Can I vent please, yikes.
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mcee1
Posts: 3,974 Member
Big Sigh.... we had a meeting this morning with our customs broker and company owner, seems as though the metal tariffs imposed by the POTUS may just put us out of business.
We have a shipment now on the water coming in from China landing in LA July 9th that will cost us another $25,000 in import duties, our selling prices haven't included these costs obviously since they didn't exist at the time of ordering. And another load coming in July 20th costing additional fees at the tune of another $15,000. This $40,000 in additional unexpected cost will eat up the profit margins on this work in process, plus some.
I'm told to increase my selling prices moving forward on quotes 15% of the 25% import duty being taxed, and that our company will have to try to absorb the 10% additionally from our next to nothing profit already. Our margins are low now, so I don't see how that will work in long run. This is NOT good for our small business. My prices increased as of January already, and have cost me losing projects proposed because of it already. The economy on the capital equipment we sell is already slow this year. No one is spending on capital projects, they are waiting to see what happens. And the few orders we have, the profit will be gone. And no, we can't bring in steel goods and say they are textiles, i.e. wool socks, blouses and the like. Customs don't go for that.
Did you know that since World War I era, 80% of our steel used in USA has been imported into the USA. And that the USA is not even remotely capable of manufacturing raw material here, in the USA, in the amounts of raw steel and aluminum manufacturing here in the USA requires, even if we wanted to. Many steel mills are closed shut down, gone. Have been for years.
For us to 100% manufacture our product here vs China, the cost is triple or more, no kidding. And our selling prices will not accommodate such. We are a global company exporting and selling here in USA and all over the world.
I need to get out of manufacturing asap
I will be here 30 years this November. Guess its time to do a resume huh.
Im afraid to even look at the stock market this week, or my 401K
Please tell me POTUS if bluffing, this too shall pass, ahem ahem cough cough
Disclaimer: this post is in no way intended to get into a political push/pull one way or the other. Its intend is to vent to my friends here, and express my real fear and emotional state of uncertainty, for me financially, my lively hood and future etc.
God help those of us that will be directly impacted by this ! Pray for us! Thanks.
I shall not eat my emotions, I shall use the tools in my bag to redirect from the cookie jar.
We have a shipment now on the water coming in from China landing in LA July 9th that will cost us another $25,000 in import duties, our selling prices haven't included these costs obviously since they didn't exist at the time of ordering. And another load coming in July 20th costing additional fees at the tune of another $15,000. This $40,000 in additional unexpected cost will eat up the profit margins on this work in process, plus some.
I'm told to increase my selling prices moving forward on quotes 15% of the 25% import duty being taxed, and that our company will have to try to absorb the 10% additionally from our next to nothing profit already. Our margins are low now, so I don't see how that will work in long run. This is NOT good for our small business. My prices increased as of January already, and have cost me losing projects proposed because of it already. The economy on the capital equipment we sell is already slow this year. No one is spending on capital projects, they are waiting to see what happens. And the few orders we have, the profit will be gone. And no, we can't bring in steel goods and say they are textiles, i.e. wool socks, blouses and the like. Customs don't go for that.
Did you know that since World War I era, 80% of our steel used in USA has been imported into the USA. And that the USA is not even remotely capable of manufacturing raw material here, in the USA, in the amounts of raw steel and aluminum manufacturing here in the USA requires, even if we wanted to. Many steel mills are closed shut down, gone. Have been for years.
For us to 100% manufacture our product here vs China, the cost is triple or more, no kidding. And our selling prices will not accommodate such. We are a global company exporting and selling here in USA and all over the world.
I need to get out of manufacturing asap
I will be here 30 years this November. Guess its time to do a resume huh.
Im afraid to even look at the stock market this week, or my 401K
Please tell me POTUS if bluffing, this too shall pass, ahem ahem cough cough
Disclaimer: this post is in no way intended to get into a political push/pull one way or the other. Its intend is to vent to my friends here, and express my real fear and emotional state of uncertainty, for me financially, my lively hood and future etc.
God help those of us that will be directly impacted by this ! Pray for us! Thanks.
I shall not eat my emotions, I shall use the tools in my bag to redirect from the cookie jar.
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Ah, Mary, I feel for you! It is very tough for small businesses. We are a small manufacturing company. Started in 1921, so almost 100 years old. We make electric fencers. We are the oldest and longest manufacturer of electric fencers in the US. We make our fencers out of pressed steel. We are looking at going to plastic. This will for sure have an impact on our business too! We also import other "accessories", such as insulators, gate hinges, etc from China and other countries. This will impact our business in many ways. I sorta get what the President is doing on a macro level, but it can have big ramifications on a micro level! Hang in there! I only worry that the President is trying to appease a relatively small group of people, and that there will be a much larger impact further down the food chain. Then, there is the whole Harley Davidson thing. Who to believe? Harley says too expensive to export bikes, so will start making them overseas.0
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A BBB Soapbox? That's never occurred here
it sorta crystalizes the impact when you hear about it from the lens of your organization, Mary. The 6 o'clock news doesn't help educate consumers about the narrative. ~Skipper
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Oh Mary. So sorry.
Sounds like you should make the jump to garden design.0 -
Mary's Contrary Botannicals0
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I like that, Skip!
Its pretty seasonal in this region, Steph, but yes, I really do need to do something else.0 -
Well?
Stop talking about your passion and act!
In BBB land you have a legal eagle to setup an LLC; a few actuary types to setup your books; not to mention, plenty of "advisors" to advise you.
You should totally start your own landscaping consultancy!0 -
I'll be your motivational speaker, Mary! I can stay in a van, down by the river!
I'm so sorry about how this is all hurting you. You are wise to not let it become a food-fest ... that would not make you feel any better in the end, anyway. In fact, you'd probably end up feeling worse. I've found that, for me, when I'm anxious and uncertain, I need #1, to rest in dh's arms and #2, to be in control of something that I CAN control, which usually translates to cleaning/organizing a part of my home, such as a closet or drawer. That helps me cope until the feelings subside, which I've learned always happens eventually.1 -
Very sorry to hear about the negative impact the new tariffs are having on your business, Mary. Thoughts and prayers.0
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Come to FL with us Mary.0
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I've been referring to the President by a new last name - Smoot. Nobody wins trade wars.0
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I hear POTUS is coming to town tonite to celebrate Foxconn setting up shop here, and to shove his tweets up Harley Davidsons azz in person. lol. Wait and see.
On a better note, SO has assured me we'll be just fine, ride it out, collect unemployment if we close up and in the meantime, don't stress and enjoy the new RV and summer glamping plans!
I like his idea! I could get some unemployed worker assistance with resume writing, or business plan writing, etc. down the road, too.
DS1 wants me to start to write a business plan in regards to Mary's Porch Pots & Planters LLC2
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